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Quick Summary
Businesses cannot require that employees use direct deposit for paychecks. Authorization for direct deposit is cancelled upon an employee's termination.
Law Review
Cannot Require Direct Deposit
A business cannot require that its employees use direct deposit for the payment of their paychecks.
Automatic Cancellation Upon Termination
When a person's employment is terminated, voluntarily or involuntarily, by law the employee's authorization to directly deposit their paycheck is deemed cancelled.
Final Payment
A terminated employee must be paid their final pay directly by check or by some other means than direct deposit.
More Information is Available with a Premium Subscription
Text of pertinent Labor Code statutes
Policy reason why direct deposit cannot be mandated
Steps to take when an employee being paid by direct deposit leaves or is terminated
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